The Uttar Pradesh government has approved the molasses policy for the fiscal year 2024-25. This policy aims to regulate the production, reservation, and supply of molasses from sugar mills across the state and provides specific provisions to support the state’s country liquor and industrial alcohol sectors.
Under the new policy, 19% of molasses produced from each sugar mill will be allocated specifically for the production of country liquor. Excise Minister Nitin Agarwal announced that this allocation will apply to the “Molasses Year,” which spans from November 1 to October 31. This allocation aims to stabilize the supply of alcohol for beverage and industrial purposes, ensuring that domestic liquor manufacturers have consistent access to raw materials.
A conversion fee of ₹20 per quintal of molasses will be charged, contributing to state revenue. Notably, the policy includes provisions for substituting B-heavy molasses with C-heavy molasses or Extra Neutral Alcohol (ENA) when necessary, maintaining a steady supply to support revenue from country liquor sales, which contributes 46% of total excise revenue.
The policy also introduces new guidelines for sugar mills, such as monthly availability announcements and strict timelines for distilleries to lift allocated molasses. Additionally, an online portal will be used to monitor molasses reserves, ensuring that distilleries comply with requirements for timely lifting and processing. Failure to do so within 30 days could lead to penalties.
This streamlined approach to molasses allocation and regulation is intended to protect stakeholder interests, support the alcohol industry, and enhance the state’s revenue collection.
